Employee Online Salary Slip: How does it work in Malaysia?

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Payslips are mandatory as Malaysia Employment Act 1955 requires employers to furnish every employee in a statement relating to all pay components. The importance of a company issuing payslip is easy to understand – they are obligated to do so according to the law and the documentations of employee expenditures are required for most legal procedures.

Here comes the question – what is the significance of salary slips for employees then? In this article, we have summarised the basic facts regarding an employee’s online salary slips for you; read on to find out more!

Why is the salary slip important for you?

  1. It is a receipt of your furnishment from the company and a reference if any miscalculation occurred.
  2. It is a valid and required supporting document for tax deduction and income tax declaration.
  3. It is a mandatory reference of your credibility for some formal applications, i.e. when applying for loans from financial institutions.

When should I receive an online salary slip?

The digital age has moved most of the human resource procedures online, whereby employee online salary slip is now widely used in Malaysia to replace paper and ink.

Salary slips should normally be processed on a monthly basis. In Malaysia, there is yet an established law regarding employee payroll, therefore the intervals are largely depending on the company’s policies. However, the monthly salary must be made by the 7th of each month. Employee’s payslips could be delivered in paper form or downloadable online file (i.e. PDF file).

How to Calculate Salary?

The agreement signed upon employment would have the details of total working hours and the amount of agreed wages. The common practice in Malaysian companies would be 8 working hours a day. The pay for overtime, however, may vary across companies depending on their policies. Normally, overtime should be paid at 1.5 times on working days, or more than that on non-working days.

Malaysia’s income tax is processed on a yearly basis, which the time frame is the same as a calendar year – 1st of January through 31st of December. Companies in Malaysia are required to register employees for taxes, including Employees’ Provident Funds (EPF) and Social Security Organization (SOCSO or Perkeso), as soon as the first 30 days after employment.

The deduction for EPF is according to the pay-as-you-earn scheme, whereby the percentage of employee’s wages contributed to EPF depends on the received salary. For employees with a salary under RM5,000, they contribute 11% of their monthly salary while the company contributes 13%. Whereas, for employees with a salary exceeding RM5,000, they will be contributing the same percentage while the company contributes 12%.

On the other hand, SOSCO has a very simple scheme where employees and employers each pay 0.2% of the salary every month.

After deducting the taxes and optional deductions if any (e.g. leaves), you will get the amount of net pay per month. Too much work? There are a number of software and online tools that could help you sort through the numbers.

What to Expect on An Online Salary Slip?

Nothing short of what you will receive in paper form – an online salary slip in Malaysia should consist of company and employee’s details, employee’s salary statement, earning and deduction details, tax details (e.g. EPF and SOSCO), and the amount of gross pay, gross deduction, and net pay.

GreatDay HR: Efficient Way to Generate Employee Online Salary Slip

A good HRIS plays the role to help both the company and employees to have easier access to employee’s online salary slips, as well as reducing the time needed to generate one. GreatDay HR ensures every e-payslip is delivered on time with accurate and detailed information on every salary component.

Accessibility

Mobile e-payslips or employees’ online salary slip allows review of current and past salary details within a couple of minutes. With the GreatDay HR application on mobile phones, employees can access the details whenever and wherever.

GreatDay HR helps generate employees’ online salary slips as soon as the payroll calculation is completed. Ample time would be given before salary distribution as the employees would be able to review the amount of net pay and the salary details in real-time.

Furthermore, an employee’s online salary slip on GreatDay is made downloadable in many formats. Tailored to every need, employees could choose from a few file formats accordingly.

Safety

With extra precaution, GreatDay HR mobile app is designed with personalized password protection for every account. Payslip delivery is automated when payroll is completed and an online salary slip is made accessible on an employee’s account within the app. By signing into the app, the employees could access all salary components to confirm payment.

Hassle-Free

Dealing with taxes could be physically and mentally taxing. Withholding the principle of being transparent, GreatDay HR enables companies to provide payslips with detailed tax calculations and any other salary deduction for employee reference.

Moreover, GreatDayHR is fully compliant with tax and security regulations for multiple countries, including Indonesia, Singapore, Malaysia, Philippines, and Hong Kong. The mobile application comes with tax calculation compliant with TOX/SSO/EPM/MPF/CPF and is kept up to date with any changes in taxation and benefits legislation. Automatic computation of taxes also helps to avoid any mistakes!

Ready for A Demo?

Besides easing the workload with employee salary slip, we provide professional consultation on how to digitize your company’s human resource procedures. Seeing is believing – get a demo from us today!

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